tv Real Money With Ali Velshi Al Jazeera October 2, 2013 5:30am-6:01am EDT
fishing. gerald chan, al jazeera. >> that just about does it for this half hour. as always, there is plenty more on our website, aljazeera.com. get all of the latest on the stories we are covering. plenty of news and analysis all there for you. facili at what cost for you and the economy? an obama exchange is open for business. i will tell you what's next and answer some questions. i am ali velshi. this is "real money." >> this is "real money." you are the most important part of the show. the government may be shut down but twitter is still working. join our live conversation for the next half hour by using the hash tag ajrealmoney on twitter. let me show
you, what congress and the president show to have been talking about for the last 10 months, but they haven't committed. some in congress have said they have taught with a continuing resolution or cr. you have heard that before. the budget is $3.6 trillion per year. 96 to medicare, another 19% to social security. both programs are mandatory. the congress can't mess with these, with those appropriations. 176 billion. only 5%. of the 3.6 trillion, only about half can be fiddled with, including military spending and non-defense spending of the that's about 21%, by the way, for military. the budget was enacted. this one, in april, 2009.
the last time, a full budget resolution democrats and republicans haven't been able to pass a new one. this is mostly about republicans objecting to obamacare and has little to do with the budget. >> that's a problem because the government takes in a lot less revenue from taxes and other sources than it spends. deficit. >> that's the rallying cry of some republicans in congress. they want to rein in spending. things came to a head as you recall in the summer of 2011 when it came time to raise the u.s. debt limit. in exchange for agree to go raise the debt ceiling, congress and the debt seeing agreed to $1.2 trillion in spending cuts spread out over 10 years. but because congress couldn't agree on how and where to make those cuts, remember they said in august that they would give themselves until the end of the year to make that decision? they couldn't do it. because they couldn't decide how
to make those cuts, $85,000,000,000 in automatic spending cuts kicked in earlier this year including programs that were dear to democrats lie low-income housing vouchers. now republicans wants to gut obamacare before passing a bill that would only fund the government's operations for another six weeks. now, no deal has been made on that. but on or about october 17th, the u.s. government will reach its debt limit again. congress must pass legislation by then to raise the level of debt the government thought or they will face a default. billables, the ripple effect across all of the economy will be felt because interest rates that you pay to buy a home, those could -- no will the --
could. on twitter, i ask you: what is affecting you? scott titsworth says this is a strategy for trying to revisit any and all legislation not liked by the tea party. talking about obamacare in this case. david tweets, the biggest worry is that the shutdown will not last long. he wants it to go on longer. a bit of a minority view, but it's out there. the shutdown is ascing social media. many federal agencies and organizations have stopped tweeting until further notice >> but i haven't. i want to hear what you think. tweet me at ali velshi or leave us a comment on facebook. well, a few agencies will be hit harder than nasa during the government shutdown been force today furlough 97% of its workers. that means 600 of nasa's 18,000 employees were working today. greg junaman heads the union that represents the largestly number of nasa employees as well as tens of thousands.
the navy, army corps of engineers and department of engineers. thank you for being with us. i think i just need to make this real to my viewers. what does it mean that 97% of nasa is shutdown? what's the implication? >> the implications for the american people is, we are spending a great deal of money on projects that are in the system right now. currently, there is a mars rover sitting on another planet. i am not sure if there is a parking lot on mars. if there is, that's where the mars rover is sitting. this thing can only sit for so long without being worked on, but nothing is happening with it. currently, as you know, we shut down the space shuttle system because, you know, it was a 30--year-old project. well, something new come along. space launch system multipley purpose crew vehicle. the main work on those is being done
in texas. >> that's shut down. we have the jim web telescope which is supposed to nasa is this nation's investment into technology into the future high school to grade schools working with young boys and girls to try to get them interested into a career in. >> we know to be competitive. these kids have to learn science and technology and engineering and math and things we are weak at in terms of graduating students. here is something a little more people. your union, technical engineers that you are the president of also represents the it people in the government whose job it is
to identify and stave off cybe are more vim they werable right now >> a lot are being shut down. you are 100% right. >> that's who my union rep pre-70s -- represents. we phase tens of thousands of attacks on our government systems every sing day, tens of thousands every single day and right now, those people, i mean they are on call. how long does it take to hit an enter button? these people are on call who have to drop what they are doing, come into work, find out what happened. by that time, the damage is done. people have been hit with computer viruss. if our government system gets hit, every country on the planet knows our government is being shut down right now. they know that this is going on, and they are on high alert. t, you know, stosay okay, there are about going to do something, their guard is down. in addition, in addition to the cyber security
. we had somebody who drove on to the navy yard with a security badge, you know. that was cleared by, you know, contracted out. his badge was cleared. and this needs to be done when people get a security clearance, it gets updated and re evaluated every year, three years, five years, depending upon the clearance. five years maximum. that needs to be re-evaluated. right now, that work isn't being done either. people need to be concerned about this, you know, where is the security clearance evaluation? watchd it's gone. >> thanks for that. again junemann with the technical engineers. costing $12.5 million, the government shutdown, according to ihs global, that would be one week of close orbs and furloughs a whopping $16,000,000,000. these sounds like big numbers.
how much will they weigh on the economy? annie lowry covers the economy for the "new york times." annie, good to see you. we know the stockmarkets were actually up today. they are not overly concerned about this. this is more an example of what shouldn't be happened in and of itself particularly damaging to the economy? >> yeah. so in the context of a $16 trillion economy, this is not terrible. it's not good. but it's not catastrophic either. i think that's why the stockmarket has a reaction that it had. this is over in a couple of days or a couple of weeks, the economy is going to be just fine, but the longer that it drags on, the worse the effect. and the most immediate effect is that you have 2 million federal employees who are not being paid, either they are working and they are not being paid or they are furloughed. >> going to affect their ability or their decision, whether or not you can't this is worked out >> absolutely. >> if you are not receiving your paycheck and you don't think you will, you are going to puts off certain spending decisions? >> absolutely.
it might get to the point you don't have enough money to pay grandma. that will be an immediate effect and contractors are going to feel it, also. the longer it gets, the worse it will get. >> there is a constitutional requirement for the government to appropriate funds before they spends them. this is one of the few actual responsibilities that the united states congress has. in the last 10 months which b vigorous debate about the budget and there are people who have different views on how we should spend our money. we haven't been doing that. we have been talking about obamacare instead of the budget. >> there is really very little budget negotiation happening in the budget negotiation. it's very much been about the affordable care act, relitigating the affordable carable sdpooiment dpient despite it passed congress and challenge. it's unrolling, with big things coming into play. this is not about the budget. while people have been saying
that this is really bats for the republicans -- bad for the republicans that they are getting blamed for the shutdown, they have won on spending levels. these are not spending levels that democrats are comfortable with. they have been fighting them. they wanted to undo sequestration and start talking about entitlement reform. >> that's not happening. so, the spending, the spending levels are ones that are much more amenable to republicans than democrats right now. >> when you look at the start market, when people ask me about this, the best i can guess is that investors are assuming that the most conservative of republicans are going to get some of the system, they will shut the government down and realize we have to get on with this because in two weeks, we are going to be faced with ceiling. >> yeah. and the markets have not had a big reaction to the debt ceiling but as you mentioned, it would be potentially catastrophic if the united states were to start to miss those payments. and there is a feeling that maybe the markets are starting to move. we started to see the yield curve, so basically the markets
are charging more for 1 year debt than 5 year. we haven't seen a strong market reaction. as we get closer, investors are going to start paying attention. we have already started to hear business leaders and other folks in the financial markets come and remind congress they need to get their act together on that. this has not generated an adverse market reaction. that absolutely would. >> all right, annie. while they don't talk about the budget, we will do it on this show. it's not the sexiest of topics. the bottom line is it's what the government has to do. annie is a reporter with the "new york times." while the government shut down. obamacare exchanges opened for business. a look at day 1 of what you need
impact unless you've heard angles you hadn't considered? antonio mora brings you smart conversation that challenges the status quo with unexpected opinions and a fresh outlook. including yours. on august 20th, al jazeera america introduced a new voice in journalism. >> good evening everyone, welcome to al jazeera. >> usa today says: >> ...writes the columbia journalism review. and the daily beast says: >> quality journalists once again on the air is a beautiful thing to behold. >> al jazeera america, there's more to it. >> the budget impasse is over one thing, the afford alan care act, obamacare.
that was the single issue that conservatives would not budge on when the clock struck 12:00. the president dug his heels in, too t glitches caused some delay. many watched the beach ball on their mac or that loading loop on the pc as the website refused to load or reveal error messages but open enroll ment did go live on october 1st. help smooth out the process for those americans signing up for obamacare. navigators are spread out around the country. karen basha is at the forefront to help navigators reach the arch insured in florida. she is the head of the epilepsy foundation. she dispatched 17 navigators in 35 counties. karen 1y0i7bd me now. good to see both of you. you look great. if you came up to me to help me get through healthcare, i would welcome you with open arms.
are you getting a warm welcome for people? do people find you, or do you find them? >> people find us, ali. we have gotten a lot of phone calls today. we probably had close to 100 people calling. a lot of them because they were trying to navigate the system, themselves. and we were also out in the community and we had people come to us as well. all in all, i have to say, most of the people were very kind, very patient, very understanding. it's day 1. obviously there is going to be some sort of glitches, and they were all very understanding, very patient. obviously, there is always a few that are anxious. >> sure >> to get the information. >> it seems to me florida has not made it all that easy for people to figure out how to deal with obamacare or to get information. tell me a bit about this. >> well, i think that people in general are just not as educated about obamacare as we would like them to be. >> that's where we come in to
play. we are here to help people understand the system, understand the benefits that are available to them, help them navigate and make the choices that are best for them and their families. i think overall, in general, i think the number is something like 70% of the population has no clue really. >> yeah. >> what it is. >> that's why we have a few months to get this all worked out. nobody has to do anything by today. adrienne, let me ask you: what are some of the most common things you have to deal with or people ask you? >> well, as a patient navigator, one of the more common questions that i receive is: how much am i going to have to pay on a month to month basis for my health insurance? obviously, that depends upon a number of factors. primarily on the person's income, and thankfully there are a lot of tools we can use to kind of calculate an estimate of how much they will be paying for those monthly premiums. prior to the actual filling out of the application through the health insurance marketplace. so, that's probably the most
common question. other questions are about specific kinds of eligibility, you know, whether or not they have to get insurance, if they already have insurance, or if they have insurance through their employer, how long they have to be able to enroll in the marketplace. the answer to that is, they have to. >> so no one has to panic. it just opened now. don't worry if the computer didn't work and your website didn't work. we will get it all worked out. thanks to people like you across the country. karen bashagozi and adri aan madriz. it's here and you might as well understand how it works. the full effect of insurance sold on obamacare he knew changes will not be felt until uninsured americans are covered. we have asked to lay out the next key dates and why they matter to individuals and business owners. >> today, americans who have been forced to go without
insurance can now visit healthcared .gov. new year's eve day is the next milestone, the earliest day coverage kicks in. consumers have six months to pick a plan and will face a fine around tax time if they are still uninsured by april. several other parts of the law kick in on january 1st. for example, the term, "pre-existing condition" becomes a thing of the past. insurers are no longer deny coverage if you are sick or raise the price of your premium if you are a woman. insurers can't put annual dollar limit on how much of your medical costs they will cover. if you suffer from an illness like cancer and want to take part in a clinical trial, your insurer can't drop you or reduce your coverage. medicaid coverage will be available for low income people who live in states expanding the program. that means a family of four earning up to about $32,000 a
year will be he will visible for free coverage. what if you are an employer? there are big changes coming for you, too. starting next month, exchanges for small businesses are scheduled to open. owners with fewer than 25 employees could be eligible for tax credits. if you run a bigger company, 50 or more employees, you have until january 1st, 2015, before you are required to cover all of your full-time workers. now, here is a big one. starting january 1st, 2018, the law imposes a 40% excise tax on employer plans that cost more than $10,200 a year for individuals and $27,500 for families. but for now, as america's new health exchanges roll out, all eyes are focusing on how many people actually sign up. david york. >> coming up on real money, an obamacare expert answers some of the most frequently asked questions about the new law, including those you sent us and
fascinating people there, a lot of fascinating stories there. i like that al jazeera will pay attention to those kinds of places. what drew me to journalism is i like the idea that we are documenting history. al jazeera documents it like none other. and to be a journalist, and to be part of a team like that? that's an incredible blessing.
hi, my name is jonathan betz, and i'm from dallas, texas, and i'm an anchor for al jazeera america. i started in a small television station in rural arkansas. it's a part of the country that often gets overlooked. but there are a lot of fascinating people there, a lot of fascinating stories there. i like that al jazeera will pay attention to those kinds of places. what drew me to journalism is i like the idea that we are documenting history. al jazeera documents it like none other. and to be a journalist, and to be part of a team like that? that's an incredible blessing.